Roth IRA Contribution Limits and Eligibility
How can a T. Rowe Price Roth IRA help you?
There are many ways a T. Rowe Price Roth IRA can help you achieve financial and retirement investing goals:
- You pay no taxes when making qualified withdrawals after age 59½ and the account has been open at least five years.
- There are no minimum distribution requirements for the account owner.
- You may potentially reduce or eliminate the taxes your beneficiaries will have to pay after inheriting.
- Up to $10,000 in earnings may be withdrawn tax-free if used for a qualified first-time home purchase.
Roth IRA Contributions
You can make contributions to a T. Rowe Price Roth IRA when earning income, as long as that income falls below the following limits:
- For married filing jointly—modified adjusted gross income of $188,000 for tax year 2013.
- For single taxpayers—modified adjusted gross income of $127,000 for tax year 2013.
- For married filing separately—$10,000 modified adjusted gross income for tax year 2013.
*Based on cumulative total return, 12 of 12, 12 of 12, 12 of 12, 5 of 5, and 7 of 7 of the Retirement Funds for individual investors outperformed their Lipper average for the 1-, 3-, 5-, and 10-year, and since-inception periods ended 3/31/13, respectively. The Retirement 2010, 2020, 2030, 2040, and Income Funds began operations on 9/30/02; the 2005, 2015, 2025, and 2035 Funds began operations on 2/29/04; the 2045 Fund began operations on 5/31/05; and the 2050 and 2055 Funds began operations on 12/31/06. (Source for data: Lipper Inc.)